Sunday, May 9, 2010

Market Volatility Index (VIX)



Fear is back in the markets: the past week, the volatility index surged higher (+86% in 5 days !) and is now above its 40 week moving average.
It is possible to trade the VIX index using the iPath S&P500 VIX Short-Term Futures (VXX). See chart below.

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